Knowit (OM:KNOW) Stock Faces Q2 Profit That Leaves Margin Recovery Narrative Unproven

Knowit (OM:KNOW) has followed up its recent loss-making stretch with a subdued Q2 2026 print, reporting revenue of SEK 1.4b and basic EPS of SEK 0.12 as net income, excluding extra items, came in at SEK 3.4m. Over the past five quarters, the company has seen quarterly revenue move between SEK 1.2b and SEK 1.6b while quarterly EPS has ranged from a loss of SEK 12.57 to a profit of SEK 1.40, underscoring how volatile earnings have been even as revenue has stayed in a relatively tight band. Against a backdrop of trailing twelve month losses and expectations for stronger earnings ahead, this set of results keeps the focus firmly on whether margins can steadily rebuild from here.

See our full analysis for Knowit.

With the headline numbers on the table, the next step is to set these results against the prevailing market and community narratives to see which storylines hold up and which are starting to look out of date.

See what the community is saying about Knowit

Losses on a 12‑month view despite Q2 profit

• Even though Knowit posted Q2 2026 net income of SEK 3.4 million, the trailing twelve months still show a loss of SEK 290.063 million on SEK 5.6b of revenue, with trailing EPS at a loss of SEK 10.62 compared with quarterly EPS that has swung between a loss of SEK 12.57 and a profit of SEK 1.40 over the past five quarters.
• Consensus narrative talks about margins eventually improving. However, the current trailing loss and five year trend of losses increasing about 41.9% per year mean the bullish view of earnings reaching SEK 346.0 million by around 2029 comes from a very different place than the recent history of SEK 290.063 million in losses and EBITA margin pressure described in the risk summaries.
  • Supporters of the consensus view point to expected earnings growth of about 32.85% per year and a move from a current profit margin of around negative 5.2% to 5.6% in three years, but those expectations sit against the reality that trailing net income remains well below zero today.
  • What stands out is that Q2 profitability of SEK 3.4 million is small relative to the trailing loss, so investors leaning on the consensus case may want to see several more quarters of positive figures before treating the forecast margin recovery as playing out in the reported numbers.

Modest 4.2% revenue growth versus Swedish market

• Over the last 12 months Knowit’s revenue has grown 4.2% per year to about SEK 5.6b, which is slower than a Swedish market benchmark of 6.5% per year and sits alongside quarterly revenue that has mostly ranged between SEK 1,221.9 million and SEK 1,593.6 million during the past five reported quarters.
• Bulls argue that targeted acquisitions and hiring in areas like defense, fintech and digital transformation can turn this modest 4.2% growth into something stronger. However, the current numbers still show relatively steady but not high growth and leave open the question of how quickly those newer segments can change the group level revenue trend.
  • The bullish narrative leans on ideas such as better utilization in Solutions and faster scaling in Connectivity, which are expected to support revenue growth of about 3.5% per year over the next three years, but that is only slightly above the current 4.2% pace and still below the 6.5% Swedish benchmark cited.
  • Given that trailing revenue sits at roughly SEK 5.6b while bullish analysts project around SEK 6.3b by 2029, the gap between today’s modest growth and the hoped for uplift is not huge in percentage terms, so investors may focus more on margin quality and mix shift than on a dramatic revenue acceleration.

On that point, if you want to see how bullish investors connect these earnings to their longer term story for Knowit, it is worth reading the dedicated bull case in full 🐂 Knowit Bull Case.

Cheap P/S of 0.4x but losses still widening over 5 years

• Knowit is described as trading on a low P/S of 0.4x versus peers at 1.1x and the broader Swedish IT industry at 0.7x, while analysts reference a DCF fair value of SEK 353.76 alongside a consensus target price of SEK 111.67 compared with the current share price of SEK 89.60 and trailing twelve month net losses of SEK 290.063 million.
• Bears highlight that losses have grown at about 41.9% per year over five years and point to margin pressures from wage inflation, compliance costs and competition. This means the low P/S multiple and the gap to both the DCF fair value and the SEK 111.67 target do not automatically resolve the concern that Knowit could remain loss making for longer than expected.
  • From the cautious narrative, even the more pessimistic case still assumes earnings of SEK 275.0 million by around 2029 and a profit margin moving from around negative 5.2% to 4.5%, so the real question is whether the current trailing loss of SEK 290.063 million and compressed EBITA margins signal that these upgrades in profitability are harder to achieve than the models suggest.
  • The combination of an uncovered 2.79% dividend yield, widening multi year losses and a P/S of 0.4x versus industry at 0.7x gives bears some numerical support for arguing that the discount reflects real operational challenges rather than a simple mispricing, even if forecasts point to a turn to profitability within three years.

Skeptics lean heavily on these loss trends and margin headwinds, so if you want to see their full argument set out side by side with the numbers, the dedicated bear case for Knowit is a helpful next read 🐻 Knowit Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Knowit on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of optimism and caution around Knowit in this article, it makes sense to review the underlying data for yourself and decide where you stand. To quickly weigh both sides of the current debate, take a look at the 4 key rewards and 1 important warning sign.

See What Else Is Out There

Knowit still faces pressure from recent losses, modest 4.2% revenue growth versus the Swedish market, and ongoing questions around how quickly margins can rebuild.

If those profit and margin uncertainties make you cautious, it is worth immediately comparing Knowit with companies that currently show stronger fundamentals through the solid balance sheet and fundamentals stocks screener (416 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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